Problem 1-1B Classify business activities (L01-2) Below are typical transactions for Caterpillar Inc. Required Select the type of business activity as financing, investing, or operating for each transaction of Caterpillar Inc. Transactions 1. Pay for advertising 2. Pay dividends to stockholders 3. Collect cash from customer for previous sale. 4. Purchase a building to be used for operations 5. Purchase equipment 6. Sell land 7. Receive a loan from the bank by signing a note. 8. Pay suppliers for purchase of supplies 9. Provide services to customers 10. Invest in securities of another company Type of Business Activity Operating Operating Operating investing Financing Investing Financing investing Operating Financing View Problem 1-2B Assign account classifications (L01-2) Account classifications include assets, liabilities, stockholders' equity, dividends, revenues, and expenses. Required: For each transaction, select whether the related account would be classified in the balance sheet as an asset, a liability, on stockholders' equity, in the income statement as a revenue or an expense, or in the statement of stockholders' equity as a dividend. Account Accounts Related Transactions Classifications 1. Cash Receive cash from customers Asset 2 Service revenue Provide services to customers. Asset 3. Supplies Purchase supplies. Expense 4. Buildings Purchase factory for operations Asset 5 Advertising expense Pay for cost of advertising Expense 6 Equipment Purchase equipment for operations Asset 7 Interest expense Pay for cost of interest Expense 8. Accounts payable Purchase supplies on credit Liability 9. Dividends Distribute cash to stockholders Dividends 10 Notes payable Borrow from the bank Liability Problem 1-48 Understand the format of financial statements and the link among them (LO1-3) Below are incomplete financial statements for Cyclone, Inc Required: Calculate the missing amounts. CYCLONE.INC. Income Statement Year ended Dec. 31, 2021 Revenues Expenses Salaries $ 12.400 Rent 6,400 Advertising 4.400 Not Income CYCLONE, INC. Statement of Stockholders' Equity Year ended Dec. 31, 2021 Total Common Retained Stockholders Stock Earnings Equity $ 13,400 $ 6,400 $ 19,800 Beginning balance Issuances of stock Add: Net income Less: Dividends Ending balance 4,400 4,400 $ 15,800 $ 7,400 $ 23,200 Assets $ CYCLONE, INC Balance Sheet Dec 31, 2021 Liabilities 1.100 Accounts payable Stockholders' Equity 5.400 Common stock 15.400 Retained earnings Total abilities and stockholders' equity $ Cash Supplies Land Building Total assets 3.400 Problem 1-1B Classify business activities (L01-2) Below are typical transactions for Caterpillar Inc. Required Select the type of business activity as financing, investing, or operating for each transaction of Caterpillar Inc. Transactions 1. Pay for advertising 2. Pay dividends to stockholders 3. Collect cash from customer for previous sale. 4. Purchase a building to be used for operations 5. Purchase equipment 6. Sell land 7. Receive a loan from the bank by signing a note. 8. Pay suppliers for purchase of supplies 9. Provide services to customers 10. Invest in securities of another company Type of Business Activity Operating Operating Operating investing Financing Investing Financing investing Operating Financing View Problem 1-2B Assign account classifications (L01-2) Account classifications include assets, liabilities, stockholders' equity, dividends, revenues, and expenses. Required: For each transaction, select whether the related account would be classified in the balance sheet as an asset, a liability, on stockholders' equity, in the income statement as a revenue or an expense, or in the statement of stockholders' equity as a dividend. Account Accounts Related Transactions Classifications 1. Cash Receive cash from customers Asset 2 Service revenue Provide services to customers. Asset 3. Supplies Purchase supplies. Expense 4. Buildings Purchase factory for operations Asset 5 Advertising expense Pay for cost of advertising Expense 6 Equipment Purchase equipment for operations Asset 7 Interest expense Pay for cost of interest Expense 8. Accounts payable Purchase supplies on credit Liability 9. Dividends Distribute cash to stockholders Dividends 10 Notes payable Borrow from the bank Liability Problem 1-48 Understand the format of financial statements and the link among them (LO1-3) Below are incomplete financial statements for Cyclone, Inc Required: Calculate the missing amounts. CYCLONE.INC. Income Statement Year ended Dec. 31, 2021 Revenues Expenses Salaries $ 12.400 Rent 6,400 Advertising 4.400 Not Income CYCLONE, INC. Statement of Stockholders' Equity Year ended Dec. 31, 2021 Total Common Retained Stockholders Stock Earnings Equity $ 13,400 $ 6,400 $ 19,800 Beginning balance Issuances of stock Add: Net income Less: Dividends Ending balance 4,400 4,400 $ 15,800 $ 7,400 $ 23,200 Assets $ CYCLONE, INC Balance Sheet Dec 31, 2021 Liabilities 1.100 Accounts payable Stockholders' Equity 5.400 Common stock 15.400 Retained earnings Total abilities and stockholders' equity $ Cash Supplies Land Building Total assets 3.400